> I cynically suspect there's an expectation of a bailout, and that it may have even been engineered.

History supports that conclusion even without cynicism. There are insurance loopholes ready to be (re)used as in 2008 AIG case (humorously, AIG isn't AGI).

AIG got bailed out and repaid the money by raising insurance costs and general inflation for everyone. That's commonly passed as a success story (without mentioning the source of repayment funds, of course).

By latest count there are $1.5 Trills invested in AI-related assets owned by life insurance companies which are in turn owned by private equity, mostly dark portfolios there.

As you might expect, almost every state guarantees the funds of life insurance companies, purportedly to protect policy holders, so the states would make any life insurer whole in case of losses... poof, 1.5 Trills will soon to move into the pockets of some VIPs [1]. We're going to learn about the other bailout pathways soon enough.

[1] https://prospect.org/2026/08/03/ai-bailout-could-be-baked-in...